General Property Investment Questions

[Dumbastheycome]

In Thailand  it comes  down to the  simple issue of trust....coupled  with a correct understanding of whatever the  purchase /sale  agreement states and if it is legitimate to trade in all  aspects initially.

Using  a  Company or  in the  name  of a  Thai to  speculate  on property investment carries  variable high degrees  of risk. 

But  ad  hoc investment in  situations  where  personal trust is  assured is definitely possible. 

The  complexities of creating a  Company purely  for  property  investment would  probably  be   more than its  worth unless on a  scale which  would  possibly  be best in a location  other than Thailand.

Integrity is  the  most valued asset anywhere but sadly in Thailand remains  a  rare  commodity even under  law.

[khunPer]

5 hours ago, mike324 said:

I have invested in farm land 1.30 hours away from Bangkok. Land cost ranges around 250,000 to 350,000 per rai. Monthly income is 1000 baht per rai, no maintenance needed at all :-) which is why its a good alternative investments.

Going rent price for farm-land is 750 baht to 1,500 baht a rai per year – are you really paid 1,000 baht a month per rai for farmland only..?

[Robert24]

Going rent price for farm-land is 750 baht to 1,500 baht a rai per year – are you really paid 1,000 baht a month per rai for farmland only..?

Renting out farm land will give you absolute minimal returns. You make the money when the value of your farm land appreciates.

Property investment in Thailand takes some knowledge and experience. People often overstate returns. Many people tell me they make double digit returns which I know is incorrect because they don't calculate returns correctly. If you do it well, I think you can realistically achieve somewhere between 7-8%.


Sent from my iPad using Thaivisa Connect

[mike324]

13 hours ago, khunPer said:

Going rent price for farm-land is 750 baht to 1,500 baht a rai per year – are you really paid 1,000 baht a month per rai for farmland only..?

Yes that was a big typo, should be yearly. Thanks for the correction.

[khunPer]

34 minutes ago, mike324 said:

Quote

  13 hours ago, khunPer said:

Going rent price for farm-land is 750 baht to 1,500 baht a rai per year – are you really paid 1,000 baht a month per rai for farmland only..?

Yes that was a big typo, should be yearly. Thanks for the correction.

 

Investing in farmland is not for the direct rent-outcome – in best case you'll get a good bank interest rate; i.e. 1,000 baht a rai for a 70,000 baht investment or around 1.5% pa. – but for the increase in land value over a period; and that's better than keeping funds in bank and get interest only, and the same amount of money back. Even when investing in expensive prime farmland you'll get a bank interest, i.e. 1,500 baht per rai a year of for example a buying sum of 300,000 baht a rai, i.e. 0.5% pa.

 

In the area I'm familiar with up Isaan, a rai of excellent Chanote farmland was traded for 40,000 baht in 2006, and 100,000 baht in 2016, i.e. 2½ times up or an increase of 150%. Lower deeds were traded for 20,000 to 30,000 baht a rai – some even as low as 10,000 baht a rai – and 10-years later up the area around 70,000 baht a rai for even the lowest deeds (tax paid only), so for the Thai villager such an investment would mean a gain from around 130% up to 600%...

 

Edit: In my previous post I said price-increase for Isaan-farmland of 100% to 400%, more in general, and not to overestimate...

Edited March 1, 2017 by khunPer

[Destiny1990]

5 minutes ago, khunPer said:

Investing in farmland is not for the direct rent-outcome – in best case you'll get a good bank interest rate; i.e. 1,000 baht a rai for a 70,000 baht investment or around 1.5% pa. – but for the increase in land value over a period; and that's better than keeping funds in bank and get interest only, and the same amount of money back. Even when investing in expensive prime farmland you'll get a bank interest, i.e. 1,500 baht per rai a year of for example a buying sum of 300,000 baht a rai, i.e. 0.5% pa.

 

In the area I'm familiar with up Isaan, a rai of excellent Chanote farmland was traded for 40,000 baht in 2006, and 100,000 baht in 2016, i.e. 2½ times up or an increase of 150%. Lower deeds were traded for 20,000 to 30,000 baht a rai – some even as low as 10,000 baht a rai – and 10-years later up the area around 70,000 baht a rai for even the lowest deeds (tax paid only), so for the Thai villager such an investment would mean a gain from around 130% up to 600%...

 

Foreigners buying land?

[khunPer]

Just now, Destiny1990 said:

Foreigners buying land?

Foreigners can be shareholders in a Thai co. ltd. investing in property – if you read my post again, you'll see that I'm talking about "Thai villagers" when mentioning high increase on low title deeds, that can only be transfers between local villagers or family. However a foreigner can have a Thai-wife/girlfriend/partner, who can gain from borrowing little of the foreigners money and invest in farmland over for example a 10-year period...

[funandsuninbangkok]

Google REIT 

 

buy them in any market in the world through discount broker. 

 

Your a property owner, they manage it

 

need cash, sell in less than a second

 

way better than being a landlord in Thailand

[trogers]

5 hours ago, funandsuninbangkok said:

Google REIT 

 

buy them in any market in the world through discount broker. 

 

Your a property owner, they manage it

 

need cash, sell in less than a second

 

way better than being a landlord in Thailand

And what kind of p/e ratios do these reits have?

[funandsuninbangkok]

2 hours ago, trogers said:

And what kind of p/e ratios do these reits have?

 

2 hours ago, trogers said:

And what kind of p/e ratios do these reits have?

We there are hundreds so I cannot say here. Info is readily available on internet. 

 

I like this one

 

https://en.m.wikipedia.org/wiki/CoreCivic

 

 

[funandsuninbangkok]

Just now, funandsuninbangkok said:

 

We there are hundreds so I cannot say here. Info is readily available on internet. 

 

I like this one

 

https://en.m.wikipedia.org/wiki/CoreCivic

 

 

Captive tenets